SOME Americans may have been laid off or are considering quitting their jobs, but know that you could get thousands of dollars in benefits.
Reasons a person might want to quit their job can range from getting a job with better benefits to workplace harassment.
Although getting fired from a job could be performance related or a conduct issue.
But you may be compensated when you leave a job through severance pay.
Severance pay is usually given at the end of employment to a worker who is terminated for any reason – but there may be some exceptions for those who leave voluntarily.
As part of a severance package, you could be compensated with a portion of your salary, paid vacation and time off, and benefits including dental and health insurance.
Although most employers aren’t required to give you severance pay, they may give it to protect against any potential claims you may have against the company.
Also remember that your severance package may be negotiable.
Labor and employment lawyer Ryan Stygar of Centurion Trial Attorneys broke down in a TikTok video explaining why employers are offering severance pay to workers they lay off.
This is for one and only reason – and it is to protect themselves from any liability the employee may have, according to Stygar.
“For the low cost of a few thousand dollars, they make you waive hundreds of thousands, if not millions, of claims you may have against them,” the attorney said in the short clip.
So before signing a waiver that includes your severance package in exchange for not suing your employer for any claims you may have, Stygar advises reading the contract carefully.
He also added to The Sun: “Some employees will mistakenly accept a low starting offer because they don’t understand why it’s being offered, or what leverage they may have in the discussion.”
The quality of severance pay can depend on several factors, including how long an employee has been with the company and whether there is a union.
“A common formula I’ve seen is two weeks regular pay multiplied by the number of years worked for salaried employees,” Stygar said.
“So if you’re making $2,000 bi-weekly and you’ve been working there for five years, the severance would be $10,000.”
He added that unions should “establish a formula for calculating severance pay”.
But if you’ve faced factors such as harassment, retaliation, termination by your employer, Stygar recommends seeking legal advice before agreeing to the waiver.
Federal law requires people 40 and older to have at least 21 days to consider the offer.
Additionally, most workers can remain on their employer’s health care coverage for up to 18 months after termination, following the Consolidated Omnibus Budget Reconciliation Act of 1995.
However, former employees are still liable for bonuses.
But there might also be a way to negotiate this – so you’ll want to talk to a lawyer or ask your employer.
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